AUD/USD Price Analysis: Remains vulnerable near multi-year lows

AUD/USD comes under some fresh selling pressure on Wednesday.
The recent downfall has been along a descending trend-channel.
Further weakness to the 0.6500 mark remains a distinct possibility.

Haresh Menghani FXStreet

The AUD/USD pair came under some renewed selling pressure and dropped to a fresh 11-year low level of 0.6565 on Wednesday, albeit lacked any strong follow-through weakness.

The fact that oscillators on the daily chart are pointing to oversold conditions, traders seemed reluctant to place fresh bearish bets amid a modest recovery in the risk sentiment.

Looking at the technical picture, the pair has been trending lower along a descending trend-channel since the beginning of 2020, indicating a well-established near-term bearish trend.

Moreover, the pair's inability to register any meaningful recovery suggests that the near-term bearish pressure might still be far from being over and warrant some caution for bulls.

Hence, some follow-through weakness, towards testing the lower end of the mentioned trend-channel, currently near the key 0.6500 psychological mark, remains a distinct possibility.

On the flip side, the 0.6600 round-figure mark now seems to attract some fresh selling and cap any attempted recovery near the overnight swing highs, around the 0.6620-25 region.

AUD/USD daily chart

AUD/USD

Overview
Today last price	0.6568
Today Daily Change	-0.0029
Today Daily Change %	-0.44
Today daily open	0.6597

Trends
Daily SMA20	0.6692
Daily SMA50	0.6816
Daily SMA100	0.6823
Daily SMA200	0.6847

Levels
Previous Daily High	0.6623
Previous Daily Low	0.6585
Previous Weekly High	0.6734
Previous Weekly Low	0.6585
Previous Monthly High	0.704
Previous Monthly Low	0.6682
Daily Fibonacci 38.2%	0.66
Daily Fibonacci 61.8%	0.6608
Daily Pivot Point S1	0.658
Daily Pivot Point S2	0.6564
Daily Pivot Point S3	0.6542
Daily Pivot Point R1	0.6618
Daily Pivot Point R2	0.664
Daily Pivot Point R3	0.6656

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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